Clive Palmer, 60, has a long and successful history with China and, more particularly, CITIC Pacific.

He was already a very wealthy individual on the back of real estate investments in 2006 when the Chinese company helped him land a $415 million deal in Western Australia's Pilbara region.

Now, eight years on, that connection has gone full circle with the now MP for the federal seat of Fairfax locked in a bitter legal battle with the company.

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Clive Palmer makes a point during his tirade against the Chinese government on ABC program Q&A

One of the matters concerns a bank account operated by Mr Palmer's company, Mineralogy, for which the billionaire was reportedly the only signatory at the time it all went pear-shaped.

CITIC insists that account was to be used only for covering the operational costs of Port Preston, an iron ore port in Western Australia.

The allegations centre on two cheques. One, which Chinese officials say, was drawn from this account in 2013 for $10 million which reportedly went to Mr Palmer's Cosmo Development and a $2.17 million amount which was received by PR firm Media Circus.

In short, CITIC has accused Mr Palmer of using the $12 million to fund his Federal election campaign.

That battle for the seat of Fairfax he won by a mere seven votes, necessitating a recount before his position in the House was ratified.

Clive Palmer has been accused of using funds from an account for port operations for his election campaign

Before this fallout, it was, on paper at least, the perfect marriage. Clive Palmer the mining magnate seeking to shore up a long-term business connection with the biggest market in Asia and the Chinese happy to tap into his hold on Australia's natural resources.

And such was his commitment to China, with Australia's footballing fraternity extending into the region, Mr Palmer saw opportunity there too when he bought the Gold Coast United soccer club to help improve his profile in China. Remarkably, in order to keep costs down and avoid attendance related fines from the A League, he ordered a cap on 5000 on home games for the club.

Long before he labelled the Chinese 'mongrels and bastards', he was regaling the Federal Government about the benefits of working with China and, in fact accused Australian politicians, including then PM Kevin Rudd, of not treating them with dignity.

The good old days. Clive Palmer and Junhua Wu of Metallurgical Corporation of China celebrate the China First mining venture in 2009

That was in 2009 when he insisted the Labor government's trade policies made trade more difficult for Chinese investors than American investors.

In an address to the Queensland Media Club he called the policies 'racist' and said there was 'a great cry in Australia about Reds under the bed'.

Mr Palmer then argued that 'capital is now in China, it's not in the US' and that Australia had a terrific opportunity to become a strong trade partner with China 'if our politicians could only be fair and treat the Chinese people and Chinese government with the dignity they deserve.'

'Why should the average American, regardless of his education or qualifications, have the right to invest $950 million in Australia but the ­average Chinese, regardless of how much money he has, is not allowed to invest without our Treasurer saying so?'

That pronouncement landed as Mr Palmer's Waratah Coal and Metallurgical Corporation of China were granted major project status by the Commonwealth for the 'China First', a $7.5 billion thermal coal mine in Queensland.

It hasn't been all plain sailing though, as evidenced when Clive Palmer saw the opportunity to parlay the WA success in his home state of Queensland, even further.

One of the mining projects in the Pilbara region which helped build Clive Palmer's fortune

The billionaire has hopes of replicating his WA mining success back home in Queensland

But in early 2010, as he was trumpeting the success of a $60 billion 20-year deal with the help of the Queensland Premier Anna Bligh, no less, the wheels started to come off.

Mr Palmer's gaffe in naming the wrong company was seen as a little more than a bump in the road but then doubts began to surface, first from the vice-president of China Power Holding International, suggesting it was far from a done deal. Doubts which turned to denials by the boss, Li Xiaolin, who also happened to be the daughter of China's then premier, Li Peng.

But the larger than life entrepreneur turned politician would not be denied. Late last year he had cause for double celebration - winning a spot in parliament along with the final approval for the massive 'China First' project in the Galilee Basin - which could potentially produce up to 40 million tonnes a year.

The ebb and flow of his business dealings took its next twist when CITIC Pacific launched its legal action over the Sino Iron Project.

One of Mr Palmer's companies, Queensland Nickel, put $12.7 million back into the account after media accounts of the incident first emerged. He has countered, claiming to be owed $500 million in royalties by 'the Communist Chinese government'.

On Monday night, while pressed on the legal action, he launched into a tirade about Chinese business interests in Australia, accusing Chinese people of trying to take over Australia.

'I'm saying that because they're communist, they shoot their own people, they haven't got a justice system and they want to take over this country. And we're not going to let them do it.' Clive Palmer on Monday night

'The Chinese government wants to bring workers here to destroy our wage system ... they want to take over our ports and get our resources for free. So far they've shifted $200 million worth of iron ore out of this country without paying for it. I don't mind standing up against the Chinese bastards and stop them from doing it,' he said.

He went on to add: 'I’m saying that because they’re communist, they shoot their own people, they haven’t got a justice system and they want to take over this country. And we’re not going to let them do it.'

'We'll be suing them and they'll be answering the questions. We’ve had three judgments in the Federal Court and the Supreme Court of Western Australia and an arbitration against these Chinese mongrels.

'I'm saying that because they're Communist, they shoot their own people, they haven't got a justice system and they want to take over this country. And we're not going to let them,' he said.

Clive Palmer softened his tone when he took to Twitter but ramped it up again later in a radio interview

That sparked a diplomatic firestorm and the maverick MP did soften his tone somewhat when he took to Twitter.

'My #qanda comments not
intended to refer to Chinese people but to Chinese company which is
taking Australian resources & not paying'.

But in typical style he jumped back into the fry-pan again late yesterday when quizzed on radio whether he stood by the mongrel comment, repeating his 'shooting their own people' claims against the Chinese government.

'They’re a government-owned body that executes people in China, doesn’t give them the right of free speech, doesn’t allow them to talk on the radio like I am now … they have one day trials, they don’t have any democracy.

'I feel for the Chinese people that live under such tyranny.

'I think (they're mongrels) if they do that to people and kill them and shoot them, which they do do, and they don’t have elections. I don’t think that’s the sort of values that we have in Australia.'

And today, in a statement, he has tried to close off the controversy by saying the comments he made were meant for 'one Chinese state-owned company that has failed to honour its agreements and announcements made to the Hong Kong Stock Exchange in early 2006'.

'I have been an admirer of China and its people for many years,' he said.

'The Palmer United Party is very fortunate to have in its ranks Australia’s first mainland-born Chinese Senator Dio Wang. I have been a major supporter of the Chinese for a long time.

'What is unacceptable is a Chinese state-owned enterprise that abuses the legal system for commercial gain in a global strategic effort to control resources.

'I cannot support any deterioration of the living standards or the wage systems that any Australian or other person living in this country are entitled to under Australian law. No amount of money, no amount of lobbying should blind us from the duty to protect,' he added.